HP Enterprise Services UK Ltd., a subsidiary of
), revealed that it has entered into an agreement to provide
technical support to the Cambridge University Hospital of NHS
foundation trust. The deal, worth $210 million, is a 10-year
technical support agreement, wherein HP will provide the
necessary support to CUH's eHospital program.
This will help the healthcare provider offer a true digital
hospital environment by enabling effective clinical decisions and
will help in improving overall quality of patient safety,
resulting in better patient care.
As per the terms of the agreement, HP will work in
collaboration with the CUH in order to build a secure, robust,
integrated IT environment, which will help clinical staff
identify each patient's clinical and administrative information
using the electronic patient record system.
As per a new Accenture survey covering the eight key
international markets, the global EMR/EHR market is slated to
grow to $19.7 billion in 2013. Therefore, there is a good
opportunity for HP to tap this market.
HP is already providing EMR solutions to companies across the
globe. Some new offerings are giving way to renewed deals on a
regular basis. More hospitals and clinics are taking the help of
IT companies to efficiently manage their records.
Although the company's new offerings are gaining acceptance,
it might not have a remarkable effect on its near-term revenue.
However, resultant revenues could help offset the shrinking PC
business. The new product mix is a strong step taken to improve
the profitability of the company.
Apart from storage, the company is also exploring other
segments like data analysis, information management, security and
software. Although the cloud offers plenty of opportunities,
tough competition from
) is a challenge.
Currently, Hewlett-Packard carries a Zacks Rank #2 (Buy).
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